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Alcatel-Lucent agrees to pay $4.2M to settle fraud claims

The global telecom Alcatel-Lucent has agreed to pay $4.2 million to settle claims that it defrauded the Army.

Federal prosecutors said the company submitted misleading test certificates concerning the design and construction of a 911 emergency response system in Iraq.

The Justice Department said it is seeking to recover losses whenever a contractor makes a false claim.

But prosecutors said that was especially critical in “hot spots” like Iraq, where it’s hard and dangerous to verify invoices.

See how your federal salary compares to other feds.

The Army awarded Alcatel-Lucent the quarter-billion-dollar contract in 2004. The company’s former contract manager blew the whistle and he’ll get a share of the settlement.

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This story is part of Federal News Radio’s daily DoD Report. For more defense news, click here.